This morning, Apivio reported its third quarter, 2015 results. The company earned $516,529 on sales of $16.86-million, up 52% from the $11.07-million topline the company posted in the same period a year prior.

“We are pleased with the unexpectedly high performance of the last quarter,” said CEO Rob Bakshi. “Our South Korean subsidiary continues to grow and provide the engine for business development activities in the North American market. Despite some short delays, the NEC relationship is expected to enhance and accelerate. Business development efforts in North America for our L2 Wi-Fi phone are under way as we continue to perfect the technology.”

Sangha says this quarter was strong enough to warrant slight bumps in his revenue estimates for Apivio. The analyst now expects the company’s revenue will grow 21 per cent to $56.4-million this year, will add 13 per cent in 2016, to $63.8-million, and then a further 17 per cent to $74.8-million in fiscal 2017.

In a research update to clients this morning, Sangha maintained his “Buy” rating and one-year target price of $1.00 on Apivio, implying a return of 185.7 per cent at the time of publication.

The analyst believes Apivio is cheap compared to its peers.

“Apivio is currently trading at 0.3x EV/Revenue multiple of out CY16 forecast, well below the average of its industry and Canadian software peers,” says Sangha. “Our target price represents EV/Revenue multiple of 0.7x and an EV/EBITDA multiple of 11x applied to our FY17 estimates.”

About Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.